Utah education-savings accounts hits 100,000

One hundred thousand future college students in Utah will now be better prepared for the high cost of getting a degree, and that number continues to grow.

The Utah Educational Savings Plan reached 100,000 accounts on Tuesday, a goal that was originally set for later this fall. The option to enter the state's 529 college savings plan has been available since 1996 but has recently experienced phenomenal growth, including a nearly 23 percent increase in new accounts since this time last year.

"Families are preparing for the growing financial challenge of funding a college education," said UESP director Lynne Ward. "They see it as an important investment in their child's future."

The ahead-of-schedule accomplishment indicates the public is embracing the state's plan, in part because of its relatively low fees and large range of investment options, Ward said.

"It's a good, solid plan," she said, adding that Utah's 529 savings plan has received national attention and high rankings for its appealing investment options.

The 100,000th account was set up by Wendell Eames, Springville, for his young child, who Eames hopes will be able to attend college without the stresses of coming up with all the funding himself.

"UESP is a valuable planning tool for my child's higher education," he said.

Eames' thoughts are matched by many others who have set up plans for their children in hopes of a better future. The 100,000 college savings accounts total $2.3 billion invested for higher education.

"We try to make it very easy for everyone in Utah," Ward said. "We're trying to target families at all income levels and say, whether you can save a little or a lot, start today."

The plan currently has an option for automatic payroll deduction, in which money can be taken directly out of a paycheck before it is deposited into a person's account. Savings and checking account deductions are also available, and anyone can donate to an account. There are no minimum deposit or balance requirements, which Ward says makes it a flexible option for many families. Donations are tax-deductible.

"The college years come sooner than you know," Ward said. For families who choose to set up a plan, she said, "it's also sending a message to your child that says we as a family are making a financial commitment to your future."

UESP's 529 savings plan is available to anyone, including out-of-state participants. Information is available at www.uesp.org.

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E-mail: wleonard@desnews.com